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OpenAI Said to Be Considering Lower Token Pricing Amidst Growing Rivalry With Anthropic

The ChatGPT maker is reportedly considering the move in anticipation of similar pricing adjustments from Anthropic.

OpenAI Said to Be Considering Lower Token Pricing Amidst Growing Rivalry With Anthropic

Photo Credit: Unsplash/Levart_Photographer

The San Francisco-based AI startup is also said to be anticipating an IPO filing

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Highlights
  • Competition with Anthropic could reportedly drive the price cuts
  • Lower costs for AI models may aid enterprise adoption
  • CEO Sam Altman recently admitted that AI costs are high
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OpenAI might be considering significantly reducing the prices it charges customers for using its AI models, according to a report. The ChatGPT maker is said to be evaluating a strategy where it may slash its token pricing, which is the usage-based metric commonly used by AI companies to bill customers. The move is reportedly driven by the company's intensifying rivalry with Anthropic, which has also been rumoured to lower its prices in the future.

OpenAI's Token Price Reduction

Citing sources familiar with the matter, the Wall Street Journal reported that OpenAI is discussing substantial reductions in token prices. By doing so, the San Francisco-based AI reportedly aims to strengthen its position in the rapidly growing enterprise AI market.

Tokens, notably, are the units used by AI companies to measure and bill usage of their models. The report speculates that lowering the token prices could potentially make OpenAI's AI offerings more attractive to businesses that rely heavily on such tools for purposes like coding, customer support, research, and productivity tasks.

The ChatGPT maker is reportedly considering the move in anticipation of similar pricing adjustments from Anthropic, which is deemed to be one of its biggest competitors.

OpenAI CEO Sam Altman has already acknowledged concerns surrounding AI costs during the 'Intelligence at Work' event. The executive described costs as "a huge issue", suggesting that the company was exploring ways to help customers get more value for what they pay, while also reducing expenditure.

The report also highlighted the growing concerns among businesses regarding AI-related spending. WSJ reported that several companies have begun reassessing budgets allocated to agentic AI systems. Earlier this year, an Uber executive reportedly stated that the company had already exhausted its 2026 budget for agentic AI usage, while another executive questioned whether AI-assisted coding improvements were translating into tangible customer-facing benefits.

The development has surfaced amidst growing speculation towards OpenAI's potential public listing. The ChatGPT maker reportedly confidentially filed paperwork for an initial public offering (IPO) earlier this week. Altman is also said to have sent an internal Slack message to employees, informing them of the company's intentions to go public within the next year.

OpenAI, however, has yet to publicly comment on the reported pricing discussions.

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Further reading: OpenAI, ChatGPT, Anthropic, AI
Shaurya Tomer
Shaurya Tomer is a Sub Editor at Gadgets 360 with 2 years of experience across a diverse spectrum of topics. With a particular focus on smartphones, gadgets and the ever-evolving landscape of artificial intelligence (AI), he often likes to explore the industry's intricacies and innovations – whether dissecting the latest smartphone release or exploring the ethical implications of AI advancements. In his free time, he often embarks on impromptu road trips to unwind, recharge, and ...More
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